Raiffeisen accepted for buyback three securities with a
total face value of 800 million euros, which holders were
invited to tender on Feb. 23, it said in a statement today. The
buyback below face value creates a profit that boosts capital by
113 million euros, or 12 basis points, Raiffeisen said. A basis
point is one-hundredth of a percent.

Rule-makers decided in 2010 to phase out most hybrid debt
as capital starting in 2013 because it failed to provide a
buffer for losses in the financial meltdown. Raiffeisen joined
lenders including Erste Group Bank AG and Commerzbank AG in
buying back or swapping such securities to strengthen its
capital ratio.

Raiffeisen and its parent Raiffeisen Zentralbank
Oesterreich AG were told by the European Banking Authority to
fill a capital gap of 2.1 billion euros in the first half of the
year by raising capital or reducing assets. The Vienna-based
bank said Jan. 25 it had completed 1.4 billion euros of measures
toward that goal and was planning another 1.6 billion euros. The
bond buyback is in addition to those measures, according to bank
spokeswoman Susanne Langer.

Raiffeisen agreed to buy back 55.4 million euros of
preferred perpetual securities, 109.2 million euros of
subordinated perpetual notes, and 193.2 million euros of another
series of subordinated perpetual notes, the bank said. The
settlement will be March 8.